people. purpose. passion

People. Purpose. Passion.

2014Annual Report

ABOUT THE COVERNWTF has been dedicated to building vibrant communities based on relevant and sustainable business practices. On its 30-year anniversary of serving the marginalized of the Philippines, the organization and its management celebrates and credits the cornerstone of the success and social impact of these services - its people. These men and women have dedicated their lives in service of those in need, and they have done so with resolve and faithfulness to the organization’s purpose of providing sustainable, client-responsive developmental services to the poor. NWTF thanks them for the passion they bring into the workplace and throughout the communities they work.

NWTF’s strength lies in its people, joining together as a team for a common purpose of serving the poor with passion.

2014ANNUAL REPORT

Dungganon Bank Inc. is one of the first microfinance thrift banks in Visayas providing relevant and professional banking services to the poor.

DO-IT Foundation was founded with a simple goal in mind – create solutions to problems using appropriate and affordable technology.

Project Dungganon aims to help poor women from rural communities achieve self-reliance and rise above the mire of poverty by providing them with the training and the credit to start or maintain their own small business ventures. By providing access to collateral-free credit through loans and other services, Dungganon helps them discover their own entrepreneurial spirit and realize their potential to effect positive change.

Kasanag means “light” in Hiligaynon. It targets rural and urban micro entrepreneurs, providing low-interest, individual loans meant to help them acquire business assets and capital to finance their businesses.

SUBSIDIARIES

Executive Director’s Message

Chairman’s Message

Special Section: NWTF History

NWTF at 30

Post Yolanda

Statistics

Client Stories

Staff Stories

Social Performance Management

Microfinance

Education

Health and Sanitation

Technology

Environment

Forging Ahead

Audited Financial Statements

CONTENTS6

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29

We started 2014 with very low but hopeful expectations on what we could achieve after the devastation of Super Typhoon Yolanda. But true to our belief in the resiliency of the poor, our clients rose to the challenge of rebuilding their lives. With the assistance we provided such as the reconstruction loans and bridge loans for clients who lost their homes and businesses, our clients were able to recover faster, and this also resulted in our recovering most of the loans we had written off.

We thank our partners who rallied to support us: Whole Planet Foundation (WPF) converted their funding for our branches in Ormoc, Kananga and Naval from a zero-interest loan to an outright grant, allowing us more flexibility in how we could assist clients recover from the disaster. WPF also gave additional funding so we could open new branches in the badly hit areas in Eastern Samar - Guiuan, Basey and Quinapondan. Kiva also supported our Reconstruction Loans and Bridge Loans through their Disaster Recovery Funding.

It has to be said that the financial downturn we feared as a result of Super Typhoon Yolanda did not come to pass because of 4 factors: first everyone at NWTF acted in concert as a team to immediately address the needs of our clients and staff; second, our clients themselves did not wallow in their misfortune but picked themselves up and moved forward to rebuild their lives and stepped up even further by paying back the loans on businesses that were washed away in the storm; third, because our staff were committed to walk the extra mile to do what was beneficial for our clients; and last but not least, our partners were fully supportive of all our efforts.

Last year, we encountered so many challenges but also identified new opportunities for growth. Not only did we strengthen our Disaster Preparedness Program, we also expanded our product lines, opened new territories and increased our reach.

2014 turned out to be a very good year for NWTF financially. But more importantly, the challenges and opportunities we encountered also fortified our conviction that we have to always find new dynamic and innovative ways to fulfill our mission to provide sustainable financial and client-responsive developmental services to the poor.

Dr. Cecilia D. del CastilloExecutive Director

MESSAGE FROM THEEXECUTIVE DIRECTOR

“Whatever you do to the least of your brethren, you do it for me”

These words from our Lord Jesus Christ are being fulfilled in NWTF for the past 30 years. Today, NWTF has reached the Php 1billion mark in loans receivables released to more than 216,000 clients in 79 branches in Western and Eastern Visayas. This is definitely our major contribution to poverty alleviation in the Philippines.

Leafing through the following pages of this report, one can see the glowing testimonies of our clients and staff and the vivid presentation of our social projects in education, health, environment and skills training that compliment our livelihood projects. This remarkable performance was achieved by capitalizing on our most valuable asset - our employees. NWTF over the years has developed a team of leaders who implemented our vision, mission and objectives with the zeal and passion that are truly impressive and worthy of appreciation.

And so, for the next decade and maybe more, NWTF will try to improve its core design component, its systems, controls and practices particularly on knowledge management to get far better results. Based on our track record, I firmly believe that we can achieve this dream.

Therefore, on behalf of the Board of Trustees, we wish to extend our heartfelt and sincerest thanks to our management and staff, to our partners and most of all to our clients who have proven that the poor can zoom to greater heights once their dignity and honor are respected and protected at all times as we do in NWTF.

Once again, thank you very much and God bless!

Ms. Wilhelmina GonzalesBoard Chairperson

MESSAGE FROM THECHAIRMAN

NWTF2014 Annual Report 7NWTF

2014 Annual Report6

1997

1986

Registered with the Securities and Exchange Commission

1988

NWTF Executive Director, Dr. Cecilia del Castillo is part of the pioneer task force studying the Grameen Credit Methology in

Bangladesh under the request of Governor Danilo Bitay Lacson

Dr. del Castillo was appointed President of the Philippine Network of Grameen Bank

Replicators (PHILNET) and Executive Trustee of the Charter of the Asia-Pacific for Helping the Hardcore Poor (CASHPOR Philippines).

The first four Project Dungganon branches, operating the Grameen methodology, open their doors: Calatrava, Manapla,

Himamaylan and Sipalay

1989 1990

Escalante, Cauayan and La Castellana

branches open

Professor Muhammad Yunus makes his first

visit to NWTF

1991

Hinoba-an Branch opens

1992

Partnership withCatholic Relief Services

1994

NWTF receives direct assistance from Grameen

Bank

Professor Sukor Kasim, from Amanah Ikhtiar Malaysia, becomes

a consultant for the organization

NWTF receives a substantial grant from CGAP that

jumstarted NWTF’s expansion beginning with Bago Branch

Bago Branch commences operation

1998

Project Dungganon begins serving Kabankalan,

San Carlos and Tanjay clients

NWTF participates in the Microcredit Summit Campaign in New York City,

attended by over 1,000 delegates from 107 countries, where Doc Cecille

acts as moderator

1999

Project Dungganon celebrates its 10 year

anniversary

Dumaguete Branch opens along with the 1st PD branch outside Negros Province in

Toledo, Cebu

Dr. del Castillo represents NWTF in the Microcredit Summit Campaign held in West Africa’s Ivory Coast as

facilitator during the event attended by 600 delegates from 85 countries

Project Kasanag is established to offer individual loans for small

and medium enterprises

Strategic support, technical assistance and information is

received through the partnership with Women’s World Banking

Accredited as a donee by the Philippine Council for NGO

Certification

2000

Hinigaran, Valladolid and Cadiz branches open

NWTF offers micro-insurance to its clients.

NWTF became a recipient of the Rotary International Volunteer

Program from Canada

NWTF client, Emma Morales of Manapla Branch, wins

the Visayas Citibank Microentrepreneurof the Year award

2003

Bais, Santander, Puerto Princesa and Narra Branches

open

2005

Bogo, Minglanilla, Compostella, Taytay,

Catarman and Calbayog Branches open

Dungganon Bank, the first microfinance-thrift bank in Visayas, is established in

Bacolod City

Micro-crop loans are made available to clients

Clients, Jerilyn Lucareza and Virginia Borde, each receive a

Citibank Maunlad Awards

2002 2006

Ubay and Maasin Branches open

The Progress Out ofPoverty Index is integrated

into operations as ameasuring tool

Village Phone Banking is piloted in Negros, aimed at bridging the communication

gap in rural areas

Professor Sukor Kasim returns as consultant for the

2nd time

2008

Guihulngan, Guindulman and Baybay Branches

open

The Client Services Department is formally created to maximize the potentials of clients’ Income Generating and Survival Skills

NWTF partners with KIVA, a leading crowd-funding

platform aimed at alleviating global poverty

San Carlos client, Shirley Ecot, is awarded the Citibank Microentreprenur of the Year

Maunlad Award

Virginia Lubguban of Dumaguete receives the

Masikap Award during the Citibank Micro entrepreneur of

the Year Awards

Roxas, Palawan Branch opens

NWTF celebrates its 25th anniversary

20092010

Clients Ester Lumbo, Mary Jane Reyes, Enrico Jingco are

Citibank Microentreprenuer Visayas Masikap and Maunlad

Awardees

2011 2012

Naval, Dumarao, Sagay, Himamaylan, Sogod-Leyte,

Isabela, La Carlota, Manapla, Camotes, Malay and

Roxas-Capiz Branches open

Dungganon Bank opensits first branch inBantayan Island

NWTF is awarded the Eduardo Aboitiz Award for Outstanding

Institution in the 5th RAFI Triennial Awards

2013

Guimaras, Pontevedra, Talisay, Daan-Bantayan, Mabinay, Ilog-Candoni,

Sibulan, Quezon, and Bindoy Branches open

Partnership withNet-Works to collect and recycle used fishing nets

into carpet tiles

Awarded the Truelift Achievement Award

2014

Basey, Quinapondan,Guiuan, Liloan, Canlaon,

Puerto Princesa North, Kalibo and President Roxas Branches open

NWTF celebrates 30 years of service to over 180,000

micro entrepreneurs across 73 branches

1984

Mother Bakery Cooperative

Barili, Sogod-Cebu, Ormoc, Kananga, Palo, Tacloban

Branches open

DO-IT Foundation is created from the spin-off NWTF

Management Information System

NWTF’s social performance strengths recognized with

5 KIVA badges

Partnership withWhole Planet Foundation

Natividad Gabriel of Taytay Branch is a Maunlad Luzon Awardee of Citibank Micro entrepreneur of the Year

Awards

Banga, Numancia, Ivisan, Panay, Dumangas and Sara

Branches open

Sonia Palmes of Barangay Minoyan, Murcia, Negros

Occidental is a Sikap National Awardee

2007

Dr. Cecilia del Castillo is a finalist for the prestigious, international Ernst

and Young Entrepreneur of the Year Award:Leading Woman in the

Public Sector

Client, Ma. Cecilia David Salarda, receives the Citibank

Microentreprenuer of the Year Award with a special citation for the Ability to

Harness Local Market Potentials

2004

Bayawan, Dalaguete, Cordova, Catbalogan and

Brookespoint Branches open

The NWTF Scholarship Program is launched

NWTF History

Silay Branch opens

NWTF introduces innovative, environment-friendly products such as solar lamps and cook stoves to maximize savings and earnings

for NWTF clients

“I am working with a mission to reach another 30 years.”- Rhodora, Area Supervisor

“My job at NWTF is not just a job, but a path to a better life. Not just for me, my family,

but to all those who are directly affected by the outcome of my work.”- Manny, Training Dept. Manager

“My motivation is NWTF’s passion in fulfilling our

clients’ dreams.”- Gina, Loan Officer

“Seeing my clients smile and improve their lives is what

inspires me to keep going.”

- Emmanuel, Loan Officer

“Live the dream. Continue the

passion.”- Katherine, Training

Supervisor

“The passion of the founders that I continue to see is what keeps me motivated to continue doing the things that I do.” - Syrel, Asst. Director

for Acctg. & Finance

“The mission and vision of NWTF that

aligns with my own, is what motivates me.”

- Valerie, Audit Department Manager

NWTF at 30 The entire NWTF team celebrated 30 years of service

across 7 locations in Visayas and Palawan


2014 Annual Report8

POST YOLANDA

In 2011, Whole Planet Foundation (WPF) began funding for 3,897 new clients in Leyte of Negros Women for Tomorrow Foundation (NWTF) with a zero-interest loan of $333,441.

In November 2013, Typhoon Haiyan (Yolanda), one of the strongest typhoons recorded to make landfall, struck Central Philippines.

Hardest hit areas included the coastal communities in Leyte province and the southern tip of Eastern Samar.

In order to assist in the aftermath of the super typhoon, WPF approved the conversion of the NWTF loan of $333,441 to a grant in March 2014.

Months after Haiyan, a faint hint of normalcy was becoming evident. Streets once piled high with debris were again filled with traffic – the movement of people, children back in school, establishments old and new opening their doors, men and women slowly mending their lives.

There was still much to be done. The southern tip of Samar, where the typhoon made its first landfall and suffered the greatest overall destruction, was grappling to recuperate. While humanitarian aid addressed the immediate needs of the community, the region as a whole was facing a slow and uphill climb to recovery.

In September 2014 WPF approved its second grant to the organization, providing capitalization for three new branches in Samar – Basey, Quinapondan and Guiuan – areas with the slowest recovery rates. The total grant of $634,535, aims to reach 8,379 affected women over the span of three years.

To date, the total grant provided by WPF in amounts to $967,976, assisted more than 12,276 women and continues to support NWTF projects.

Coca-Cola Philippines provided seed funding of Php 7 million to infuse into affected businesses of women hit hardest by Super Typhoon Yolanda, particularly in Tacloban and Palo in Leyte Province. The fund was managed by NWTF and disbursed as micro loans for retail businesses that could operate and serve their communities amidst the otherwise crippling destruction of the typhoon.

Photo Credits: http://www.coca-colacompany.com/stories/5by20/coca-cola-negros-women-for-tomorrow-foundation-support-filipino-women-entrepreneurs-in-typhoon-affected-areas

Coca-Cola Partnership

Partnership of Whole Planet FoundationThe Bridge Loan is offered to unintentional delinquent borrowers (e.g. default due to natural disasters or family tragedies) who appeal to revive their business activities. It is part of a rehabilitation process designed to rebuild their financial capacities and reverse the cycle of poverty.

A client approved to undertake a Bridge Loan, with a loan size ranging from Php 1,000 ($22) to Php 5,000 ($111) payable weekly is temporarily exempt from the repayment of her General Loan (pre-existing business loan). The Bridge Loan can be renewed until the client has restored income, and can then continue payment on her initial General Loan.

There are two major objectives in this strategy: (1) to restore lost income, savings and productive assets; (2) to bring the client back to the supportive environment of the Center meeting.

Bridge Loan

Destruction of homes, hospitals, roads, power and communication lines; illness, disease and loss of life: these are all realities faced by men, women and children left in the wake of natural disasters. It is evident that those most of affected are the poor.

NWTF has developed quick response methods to support its clients, staff and the community during such disasters. The Disaster Preparedness Program aims to educate staff and clients in ways to increase preparedness in response to disasters and in turn prevent or decrease casualties and damages. A team of volunteers was created and trained on earthquake, tsunami, flood and fire preparedness measures. These volunteers are learned in evacuation procedures, the use and operation of protection devices, and incident reporting. All volunteers undergo Heart Saver Training conducted by the Global Training Organization, an authorized training center of the American Heart Association.

Housing Reconstruction LoanThe Housing Reconstruction Loan was developed for clients affected by Typhoon Haiyan. Its objective is to provide financial support needed to rebuild their homes and start anew. The loan also serves to give them the confidence and dignity in facing that challenge. The loanable amount ranges from Php1,000 to Php10,000 payable weekly for up to five years. In order to protect the clients, NWTF recommends screened contractors and builders, while construction materials are sourced from reputable retailers and made available in the branches.

Disaster Awareness Campaign


2014 Annual Report10

1,9391,812

41,489

59,894

308

146

541 527

888,654,017

1,217,408,244

4,786 5,876

99.81%99.50%

Average % of Female Clients

185,672 216,819

Active Clients Active Clients with Loans

178,071

207,071

9,1488,072

Average loan size per client (Php)

STATISTICS

3.54%

3.44%

Clients with insurance coverage

Clients trained through capacity-building

workshops

Clients treated through the medical camp

program

Clients’ legalized marriages through mass

wedding ceremonies

Scholarships released to clients’ children

Portfolio (Php) Average Portfolio (Php) Total Assets (Php)

Branches PAR %

7179

The Organization

Clients

203,027

169,608

20132014

1,832,192,4891,342,286,389

2%Food Processing

3%Manufacturing

5%Services

7%Fishing

11%Agri-based

22%Trading

26%Retailing

24%Sari-sari

Samar6 Branches9,613 Clients2013: 3 Branches 6,050 Clients

Leyte8 Branches21,054 Clients2013: 8 Branches 18,167 Clients

Bohol2 Branches5,563 Clients2013: 2 Branches 4,396 Clients

Cebu12 Branches32,547 Clients2013: 11 Branches 26,263 Clients

Negros Occidental23 Branches73,557 Clients2013: 25 Branches 69,043 Clients

Negros Oriental8 Branches21,750 Clients2013: 6 Branches 16,021 Clients

Capiz4 Branches12,231 Clients2013: 4 Branches 12,308 Clients

Iloilo3 Branches9,870 Clients2013: 2 Branches 5,690 Clients

Guimaras1 Branches2,589 Clients2013: 1 Branches 1,793 Clients

Palawan7 Branches16,629 Clients2013: 6 Branches 16,805 Clients

Aklan3 Branches9,870 Clients2013: 2 Branches 5,690 Clients

Branches

Loan Distribution



CLIENT STORIESIn every woman resides the intrinsic nature to care and provide for her family despite hardship, adversity and the mires of poverty. These women share their stories of triumph.

Emma MoralesAfter receiving her first loan of Php 1,000 ($22) from Project Dungganon in 1989, Emma Morales immediately began food vending at a local school selling fried bananas and other snacks while her husband Gerardo worked as a mechanic. Fast-forward 25 years and the couple, through their hard work and business savvy, now own a carinderia (eatery); a batchoy house (noodle house); a piggery; a boarding house catered to transient delivery truck drivers; and own a 1,316 square-meter plot for planting bananas. In 2002, Citibank Philippines and Citi Foundation in partnership with Bangko Sentral ng Pilipinas (BSP) and the Microfinance Council of the Philippines, Inc. presented Emma the Citibank Micro Entrepreneur of the Year Award, commending her journey to success and meeting the following criteria: a 100-percent repayment rate, measurable results in terms of employment generation, sales turnover, growth in enterprise profits, and rate of reinvestment of enterprise profits.

Myrna MillarezMyrna and her husband, Guillermo, met while she was in high school and married after graduation. They lived in a bamboo hut with a roof weaved from coconut leaves. Myrna didn’t want to raise her children in such a flimsy and vulnerable house. In 1992, she set out to help her husband support the family and started a piggery in their backyard with her Php 1,000 ($22) loan. She bought lobsters and shrimp from fishermen and sold them to wholesalers in the city. Soon she was moving 20 kilos of crabs/lobsters and 50 kilos of shrimp a day. Myrna was entrepreneurial, reinvesting in their businesses and spending money only if needed. She saved up to buy tools, equipment and vehicles to support her growing business. In 2002, the couple decided to venture into farming, investing in standing cane and trading rice. In 2004, they leased 10 hectares of sugarcane land, 2.5 hectares of rice field, and half a hectare of a nipa (palm) plantation. Two years later, they purchased 1.2 hectares of the sugarcane plantation valued at Php 400,000 ($9,008). They’ve amassed 17 fishing boats, a dump truck, a ten-wheeler truck, a six-wheeler truck, and a Canter to sustain the operational demands of their businesses. Myrna realized her dream of building a safe and sturdy home for her family. Although she and Guillermo have been teaching their children the business in the hopes that they will run it in the future, they still dream of seeing all six of their children graduate college.

Cecilia SalardaIn 2007 Cecilia Salarda finds herself meeting the Philippine President, Gloria Macapagal Arroyo, in Malacañang Palace. She is awarded by Citibank Philippines and Citi Foundation in partnership with the Bangko Sentral ng Pilipinas (BSP) and the Microfinance Council of the Philippines, Inc. the 2007 Micro Entrepreneur of the Year Award (Inspiring Story Category). Early in her marriage, Cecilia was a retailer of balut (duck eggs) purchasing stock wholesale from a city two hours away from her own. She began reselling duck eggs starting from 60 pieces and grew to 1,000 per order. After attending a Project Dungganon training seminar in 1999, Cecilia decided to take out a Php 3,000 ($68) loan and purchased an even larger quantity of balut from her supplier. As her earnings grew, she reinvested in her balut business and started selling salted eggs, salted peanuts and coated peanuts. Today, Cecilia has become one of the largest balut and salted egg wholesalers in her province, owns a fleet of tricycles for her mobile stores, and a proud owner of her farmland cultivating her own products. She is frequently invited to various seminars to share her experiences and how tory of success with others.

Melinda SumidoMelinda Sumido was once a full-time housewife who depended entirely on her husband, who like so many men in their community plowed the seas to supply the local fish markets with daily produce. Introduced to Project Dungganon by a neighbor in 2001, Melinda made the decision to take on a Php 3000 loan and invested in her husbands business. As their business developed and income grew, she saved up to buy land and built a concrete home where their nipa hut once stood. She and her husband continually reinvest in their business to amass a small fleet of fishing boats and to start on a new business venture – a coffee shop catered to the fisher folk in their community.

Practioners are well aware of the challenges that come with the nature of the industry, and know full well that the overall success in tackling poverty and achieving social impact at the grassroots level lies in its people. 2014 marked 25 years of service for five extraordinary individuals who helped build the organization to be what it is today. Here they share their passion, purpose and commitment to helping the poor and how the years they spent with NWTF have shaped their lives.

Elnora OlanoBefore I started work for the three Directors, I was a housewife to my husband who worked as a jeepney driver. We were raising three children at the time and were having trouble meeting our growing expenses. When NWTF was formed, I did not hesitate to take on the challenge as a loan officer in Manapla, Negros Occidental. Although I sacrificed time away from my home, our lives changed for the better. I was able to help my husband and send our children to school, all of whom are now working professionals. After years of living in a palm and bamboo house, we were able to build ourselves a concrete home. I have made many close relationships with my co-workers through the years and the respect and love I have is reciprocated everyday. They now call me Nanay (mother). I am forever grateful to NWTF for the countless blessings and relationships I’ve made here at NWTF through the years.

Elma PabuayaFresh from college, I was determined to find work where I could be of help to the less fortunate. I wanted to share my knowledge and skills to assist them in achieving their dreams and reach their maximum potential. In my first position as a loan officer, I learned the unique intricacies of rolling out the Grameen method in the region that has since served as the foundation of my career at NWTF. Today, I am a Social Performance Management (SPM) supervisor and responsible for the implementation and monitoring of NWTF’s Social Goals. The love I have for my work and the inspiration I get from our Board of Directors is what has keeps me going.

Joseph GuevarraTwenty-five years ago, I was drawn to NWTF because I wanted the opportunity to help the poor, as well as earn a living to help my parents. Like many of my counterparts, I started out as a loan officer. Today, I am the Assistant Manager of the Client Services Department where we work to deliver programs to enhance clients’ skills and knowledge to develop their businesses and improve their way of living. Through NWTF, I was able to take my Doctorate in Philosophy Major in Business Management, which has raised my abilities and contribution to the organization. I am thankful for my time here, which has given me the means to provide for my own family. I am especially grateful for the opportunity to serve the poor because I personally feel that being close to the people who are in need brings me closer to God.

Leonardo BetitaOver the past 25 years, I have been a loan officer, a branch manager and currently finding fulfillment as the Project Manager for Environmental Products (i.e.: solar lamps, water filters, cook stove) under the Strategic Projects Department. My team and I educate our clients on the impact they have on the environment, and introduce cost-effective products that can improve their business operations and increase savings. I have learned a great deal from my time at NWTF and our clients. I look forward to continue to be a part of the success of the organization.

Jonah SamandeI started in NWTF straight out of university in order to support my family. I wanted to be part of something that made a difference in society and I most appreciated that NWTF empowered women. Without today’s technology, ease of communication and transfer of information and even just roads to reach our clients, the job was admittedly difficult. But it gave me pride – pride that I could help my husband with our families needs and pride that I was and still am making a difference in society.

STAFF STORIES



Towards Tomorrow: Realizing NWTF’s Vision with Social Performance ManagementSocial Performance Management (SPM) involves ensuring that microfinance institutions and other entities that claim to help the poor stay true to their intentions by ensuring that their operations have measurable social effects.

To do this, we at NWTF must certify that SPM is an integral, inseparable part of our very structure. Throughout the first half of this decade, we have worked to do so by employing tools and creating systems within the institution that make it possible. For instance, NWTF’s SPM Committee, which consists of representatives from every tier of our front-line staff, from Loan Officer to Area Supervisor, has served as a consulting body for the formulation of policies, strategy, procedure, and products. The Committee’s structure and procedures have been refined and formalized so that NWTF’s development as an institution continues to stay true to both its clients and its staff.

NWTF ideals have been further distilled into concrete Social Impact Goals –80% of our new clients must be living below the poverty line, 50% of them should experience upward movement after three years with NWTF, and at least 30% of them should have broken out of poverty after 5 years with NWTF. Furthermore, we have broken down those goals into a set of action steps:

#1: Target the poor – 80% of NWTF’s new clients should be living below the poverty line when they join Project Dungganon

NWTF was one of the first institutions to use the Progress Out of Poverty Index scorecard. It is a relatively time-efficient way to identify a potential client’s possible income level. When one client’s PPI scores are compared over a period of time, they offer a quantitative picture of how her lifestyle and income levels have changed, and allow us to identify whether or not we are serving her properly. On an institutional level, PPI has become a vital tracking tool to help us determine whether or not we have met our goals. Using PPI, we have been able to determine that our first Social Impact Goal –targeting the poor by ensuring that at least 80% of our entry-level clients live below the poverty line—has been reached. In fact, as of 2013, we have not only met that 80% goal, but exceeded it.

80%of clients should be below

the poverty line at entry

50%upward movement

within 3 years

30%should move out of poverty

5 years after entry

#2: Delivering the clients’ needs – At least 50% of NWTF clients should experience upward movement within 3 years of joining Project Dungganon

PPI scoring is now part of NWTF Project Dungganon’s regular loan application procedures. With each General Loan renewal, clients undergo PPI scoring again, and when a client’s PPI score has increased –say, from 34 to 46- it can be said that she has experienced upward movement, an indication that her life has improved since she had first joined Project Dungganon.

With our first Social Impact Goal of client targeting reached, we as an institution now turn our energies to ensuring that clients experience upward movement. This can be done by delivering their needs; providing them with the products, services, and delivery methods that fit their businesses, lifestyles, and socio-economic conditions. Our current focus on refining and integrating our SPM structures helps us do just that. The position of SPM Coordinator was created in 2014. Through her, NWTF now has someone who can dedicate the considerable effort and energy needed to ensure our Operations’ compliance with our internal SPM standards. A team from the Research and Development Department further bolsters her work by providing macro-level data on NWTF clients, as well as input and information on institutional standards and best practices communicated by MFI allies, assessing institutions, and other entities dedicated to poverty eradication and economic justice. These efforts are in turn enhanced and refined by input from members of the SPM Committee, and made even more concrete by approval from the SPM Core Committee, which consists of Department Managers and representatives from NWTF’s Board of Directors. All of these efforts are, in turn, communicated to the rest of the institution for implementation through the quarterly Area Meeting conducted at the Head Office.

The construction and operationalization of a multi-pathway feedback system is one of the first fruits of this effort to integrate SPM into NWTF’s day-to-day structures. Through it, both our clients and our staff will be able to directly communicate their needs, concerns, and ideas. It would allow us, as an institution, to identify key areas of improvement, development, and/or potential. It is hoped that as this feedback system, and other SPM innovations gain momentum, it will foster an environment of transparency, innovation, openness, and integrity, and continue to ensure our place as one of the leading microfinance institutions in the Philippines.

#3: Create positive change – At least 30% of NWTF clients who have been with Project Dungganon for 5 years or more should no longer be in poverty

As the attainment of our second social impact goal grows more and more real, we turn to the future of our SPM efforts. We already have existing tools that allow us to identify our clients’ needs and track their progress, and we continue to innovate and develop them so that they remain effective and relevant in the Philippines’ volatile economic context.We currently have existing tools and protocols to help us determine that our clients use our products and services as intended. In NWTF, the next step in our SPM efforts will ultimately have to address this question: how can we, as an institution, truly fulfill our promise to help our clients improve their lives? After all, our ultimate vision is to be an agent of change –one that will allow our target clients to break free of the shackles of poverty and soar towards brighter tomorrows.

16 NWTF2014 Annual Report 17NWTF

2014 Annual Report

Spin-offs and New Branches

MICROFINANCE

GuiuanQuinapondan

Basey

Liloan

KaliboPres. Roxas

Puerto Princesa North

Canlaon

New BranchesSpin-off

Over the years, we have reached out to communities to extend help and create an environment where women are able to start their own businesses and rise above poverty. In a year’s time (2013-2014), we have expanded from 71 branches to 78 branches across Central Philippines.

NEW BRANCHESFour new branches were strategically opened in Eastern Visayas where 2014’s Super Typhoon Haiyan caused some of the worst devastation. These include Guiuan, Quinapondan, Basey and Liloan. In 2014, the four braches had a portfolio of close to Php 1 million.

SPIN-OFF BRANCHESSpin-off branches come from existing branches that have reached certain benchmarks and need to be divided in order to better serve the clients and support operational efficiency. A branch is eligible for a spin-off when it has reached the maximum capacity of 3,500 clients, a Php 16 million portfolio, and proven viability in the proposed new area. A full-capacity branch consists of a Branch Head, Assistant Branch Head and 10 Loan Officers, each of whom handle 350 clients. Assistant Brach Heads are in training to manage upcoming spin-off branches. As of 2014, the organization has had four spin-off branches namely: Kalibo, from Numancia & Banga branches; Pres. Roxas from Pan-ay Branch; Puerto Princesa North from Puerto Princesa Branch, and Canla-on from San Carlos Branch.

The Dungganon Memorial Plan is a non-financial, supplemental package offered to all clients to lessen the financial burden from the loss of a family member. The plan serves to protect the businesses and savings built by clients, providing security and the means to honor past love ones with dignity and pride.

The PD Memorial Plan was piloted in 2011, working with funeral homes in areas of operation to deliver affordable and respectable services for those they’ve lost. During the pilot, the weekly amortization of Php 1.00 ($0.02) included a basic casket; embalming services; 7-10 day viewing period in the funeral home inclusive of facilities and equipment; and use of a funeral car during the procession.

In response to clients’ feedback and extensive research on the impact of the memorial plan since being rolled out in 2011, the PD Memorial Plan team boosted its service offerings, which slightly increased weekly amortization to Php 3.00. The new plan includes upgraded features and amenities to honor the deceased, including an extended period in the funeral home allowing family and friends more time to visit and pay homage to their loved ones before burial.

MAF 11: The Project Dungganon Memorial Plan

PD Grad

PD Grad, or Project Dungganon Graduate, is a transitory level for clients from Dungganon loan products to individual loans. In 2014 1,438 clients converted to PD Grads with a total of Php 102 million disbursed – a 50% increase compared to 2013.

The PD Grad Team of 12 loan officers handles PD Grad loans in 58 branches with a total loan portfolio of Php 54,863,585 with a repayment rate of 99.73% in 2014.

Under the PD Grad program, clients undergo introductory training on formal banking procedures, benefits and loan product information. Monitoring of the PD Grad clients and staff is conducted monthly with quarterly meetings to discuss and immediately address client and staff concerns.

Loan Portfolio (Php)

33

58

713

1,438 54,863,585

27,000,000

No. of Active ClientsNo. of Branches

2013

2014



Increasing educational opportunity is not just an economic imperative, but a reflection of our values. The Project Dungganon Scholarship Program believes that children of NWTF clients have the inherent right to access to college education and it greatly values that belief. Educational attainment itself is greatly influenced by economic circumstances at birth. The poor seldom have the opportunity to attend college and the value of education is something that they really understand. The program is a crucial aspect of NWTF social impact goals --- that 30% of its clients move out of poverty after 5 years of entry into the program. It is also a gift of NWTF to deserving clients who visibly demonstrated their loyalty, support and dedication to the organization.

Since the program started in 2004, it has reached, inspired and empowered 134 graduates. Forty five of these graduates have been confirmed to be gainfully employed. Three now work with NWTF, 4 were hired by Dungganon Bank, Inc., one graduate from DBI-Bantayan Branch is a chef of a cruise ship plying the Carribean.

The scholarship offering has two types, the Dungganon Scholarship Program (DSP) and the Dungganon Educational Program (DEP). Aside from being a full scholarship grant the DSP provides monthly stipend for food of the scholars. Likewise, the DEP program is designed to cater to the most marginalized students where the Progress Out of Poverty Index (PPI) score serves as a benchmark for screening applicants. The number of scholars for SY 2014-2015 totalled 527.

For many of the selected student applicants this is an opportunity to become the first person in their families to attend college and fulfill a long-term goal for themselves and realise their parents’dream. As an effective means of addressing the economic problems of the parents, majority of the scholars are enrolled in state run colleges and universities near their residence where tuition and other related cost are manageable.

PD Scholarship Program

Year Level DSP DEP

First Year 0 66

Second Year 98 76

Third Year 133 101

Fourth Year 44 9

Total 275 252

Table 1. PD Scholars-DSP and DEP per Year level for SY 2014-2015.

One of the unique product offerings we have at NWTF is the Student Loan. It is designed to be an affordable loan product for post-secondary educational needs of children of NWTF clients. This program works not only with the children of NWTF clients for them to access technical schools and colleges but also with the schools so that the courses or programs that offer better work opportunities are properly communicated to the potential students.

In 2013, one such partnership we established with Bagosphere, a Singaporean owned and managed training center which helps out of school youth to learn English proficiency, computer literacy, and financial management allowing them to work for call centers when they graduate. After they complete the training program, Bagosphere assists their trainees to land a job and actually have an employment rate of 84 percent for their graduates.

Early this year, we conducted an infotainment roadshow in Bago City which showcased NWTF’s student loan product as well as Bagosphere’s training program. It was a half day event filled with games and learning activity. It was attended by more than 200 clients and children who are very interested to know what Bagosphere has to offer. After a successful roadshow, we expanded our reach to the succeeding towns, which are Pontevedra and Valladolid, and a second roadshow was formed. 400 clients and their children attended, eager to know Bagosphere’s proposal. Additional roadshows were held in La Castellana and La Carlota with an average audience of 200.

After every event, Bagosphere conducts a mini screening process to determine who will pre-qualify for their training program. As of 2014, a total of 77 students were accepted in the training program, and 80 percent of the graduates are employed in the BPO industry.

Moving forward, we are hoping to reach out to more NWTF clients and their children, introduce them to the loan product and assure them that education is within reach. We wish to establish more partnerships with other training centers that offer similar programs to expand choices and opportunities for our clients’ children.

Student Loan

EDUCATION



HEALTH & SANITATION

Limited access to clean drinking water and substandard sanitation practices due to a lack of proper facilities plague the poor of this country. It is common to see women and children tasked to carry heavy pales filled with water from the single water pump in the village, many sacrificing time for the business or missing school in the process. Typhoid, diarrhea and other diseases brought on by open defecation are commonplace in many of these communities.

To tackle the problem, NWTF has partnered with water service providers and created a water connection loan to finance the connection fee charged by service providers as well as the materials needed for the connection.

NWTF also acquired the technology for a low-cost sanitary toilet and now offers a corresponding loan product. Clients have the option of choosing to build outhouses from bamboo, plywood or concrete, based on their budget; these sanitary toilets are built by an in-house mason trained by NWTF. The masons have the option of becoming franchisees and become the authorized installer in a particular community. The loans are coupled with the Water Access, Sanitation and Hygiene educational campaign promoting better health and sanitation practices, its importance and benefits.

NWTF also partnered with Water.org, an American non-profit developmental aid organization that envisions the day when everyone has access to safe water and the dignity of a toilet. Water.org supports the organizational activities related to health & sanitation including orientation programs, WASH educational programs, training of local masons, water service provider partnerships, and other relevant activities.

NWTF WASH ProgramComplementing 2 of the 11 Decisions,NWTF implements Water Access,Sanitation and Hygiene (WASH) Program

PD Clinic

Medical, Dental and Surgical Camps

Name: Editha MolinaAge: 56Gender: FemaleMembership: Client since 2005

“It’s good that there is a free consultation. I now have enough money to buy my medicines instead of paying for the consultation fee.“

The Client Services Department (CSD) is tasked to design and implement programs focused on health, education, business training and other social services for all NWTF clients. Central to CSD operations are its Medical and Dental Clinics held each year throughout NWTF branches. The organization works with other institutions, local governemnt units, pharmaceutical companies and medical volunteers in providing these services to clients and their families.

HEALTH SERVICES BRANCHES SERVED

CLIENTSSERVED

Medical 77 53,414 ClientsDental 77 5,418 ClientsSurgical 17 580 Dependents of ClientsBlood Donation 3 35 Donors

Random Blood Sugar Testing 30 900 ClientsHealthcare Seminars 5 500 ClientsFunrobics 12 427 Clients

NWTF developed the Project Dungganon Clinic to address one of the most crucial problems faced by the poor – healthcare, offering diagnostic medical services to its clients and their famillies. Piloted in 3 branches in August of 2014 in association with affiliate doctors, the clinics are sitatued near existing branches to encourage consultations and provide medical attention to clients (and non-clients) in need of further attention post medical mission assessments. Upon diagnoses by affiliate doctors, clients are referred to proper specialists and practioners in hospitals equipped to treat their healthcare requirments.

Name: Luzminda DohinogAge: 50Sex: FemaleMembership: Client since 2004

“The PD Clinic is a big help because we don’t have to pay for expensive consultation fees anymore. We are well taken care of by the doctor.”

Hypertension

Community Acquired Pneumonia

Acute Bronchitis

Urinary Tract Infection

Hyperacidity

77

64

26

19

13

Major Ilnesses treated

Branches 3 branchesNo. of Doctors 4 doctorsNo. of Clients Served

280 clients212 immediate family



Technology has always played an important role in the growth of NWTF: from automating the loan tracking & savings system of the microfinance operations; tracking cash movements in the various branches; storing client poverty levels over time thru the Progress Out of Poverty Index (PPI) and automating Human Resource processes. NWTF has always made sure that the right tools are in place so that developmental services to the poor are effectively and efficiently delivered.

Recently we have looked at the services that are already available to regular banking clients and saw an opportunity in ATMs & Point-Of-Sale (POS) Technology. These devices certainly help microfinance clients access their loans and their money with greater accessibility and convenience. This technology gives NWTF the flexibility to improve internal processes with the possibility of managing an even wider client-base. With this in mind, we positioned ourselves to intergrate this technology into operations.

We looked at harnessing the capabilities of both NWTF and Dungganon Bank (DBI) in this undertaking. The plan was fairly simple: DBI would put the infrastructure in place and own the technology; while, NWTF will house the ATM Machines in its branches thereby maximizing the benefit to microfinance clients of both organizations.

We worked towards DBI acquiring the technology and the capability to handle ATM & POS machines. We then applied DBI to become a member of Bancnet, the largest ATM consortium in the country, and deploy ATM machines in its branches. DBI Bacolod ad DBI Bantayan now release a majority of client loans through ATMs.

Staff training is on-going with the end-goal of deploying ATM and/or POS machines to all NWTF branches and for client loan disbursements to use this technology, as well as opening the ATMs to the the public.

Technology is not merely a means to ease internal processes, but more so a way to empower microfinance clients with service delivery at par with traditional banks.

ATM

TECHNOLOGY

ManaplaTalisay

BagoValladolid PontevedraHinigaran

Binalbagan

In the third quarter of 2014, ATMs were being installed in NWTF branches, initially

with seven ATMs in branches close to Bacolod City.

Poverty Mapping is utilized by NWTF to assess a locality’s economic situation, providing a detailed description of poverty in a given area, and identfiy the poorest households in the community.

Poverty mappings are conducted by loan officers who walk the community and manually mark homes of potential clients on a hand-drawn map, continually updated and displayed in the Branch.

Digital Poverty Mapping

Map of Center 57 in barangay Balaring, Silay branch

In July 2014, NWTF partnered with Google Research to develop Digital Poverty Mapping on tablets with access to internet. The digital process was designed to enhance the existing mapping structure of the organization. The digital map contains layers of data including potential clients, homes of existing clients, clients of other MFIs, points of interest (NWTF center houses, schools, churchs and recreational areas), and area boundaries.

The aggregated data gives operations information to develop strategies for outreach and expansion; analyze drop-out concerns for recovery; and client movement. Pilot testing was successfully launched in Silay Branch in September 2014, succeeded by La Carlota Branch. Digital Mapping will steadily be implemented across 78 branches and Dungganon Bank, Inc.



ENVIRONMENTSolar

Dungganon Water FilterNWTF continues to innovate by introducing new products that address the dynamic needs of people in the communities we serve. We are currently looking at systems to power small appliances and equipment for specific businesses, while also looking at various models for distribution and after-sales servicing.

Similar to many parts of the world where poverty is rampant, when darkness falls upon an inland or coastal village, the business day and even studies come to a halt. The scarcity of power and light is detrimental to the success of a given business and everyday life. NWTF understands the role that affordable and reliable energy plays in the lives of our clients and their families. As such, we have endeavored to research solar-powered products, efficient cook stoves and water filters that will eliminate this stumbling block. The organization now offers a range of solar lamps from desktop to high-wattage lamps that can run for up to 24 hours, as well as cook stoves and water filters. These products are made available to clients at the branch and center levels where some clients have become distributors of the products, called Dungganon Business Partners.

4,219Number of Solar Lamps Deployed

Net-Works is an innovative, cross-sector initiative designed to tackle the growing environmental problem of discarded fishing nets in some of the world’s poorest coastal communities whilst at the same time support Interface’s Mission Zero goal to source 100% recycled material for its carpet tiles. The programme has established a community-based supply chain for collecting discarded fishing nets in rural coastal areas in the central Philippines including the Danajon Bank, one of only six double-barrier reefs in the world, and the nearby Bantayan Islands.

This program is composed primarily of the following organizations:

Net-Works

Zoological Society of London (ZSL), a global conservation organization

that provides the technical expertise, local community organization &

partner development

Aquafil, a global producer of nylon 6 yarn that pioneered the recycling of

netsinto yarn.

Interface, a global carpet tile manufacturer, provides the business

strategy, start-up capital and the global network

NWTF partnered with this core team in 2012 to start the program in Danajon Bank, Bohol.

The partnership started when Net-Works wanted to expand to other areas around Danajon Bank and at the same time start to explore working with a microfinance organization. The local NWTF branch in Ubay, Bohol which also covers the town of Talibon started to open centers in the area which also functioned as the buying stations of the discarded fish nets for the program, earning themselves extra income in the process.

The program also included an information and education campaign that NWTF clients and in these communities aware of environment issues and how it affects them. The campaign proved crucial to the program success shown by the increase in participation by those in the community and an increase in their daily income as well.

The Net-Works program has since been piloted in a few other areas of NWTF’s operations using the same model – the microfinance centers functioning as the buying stations of these nets in their communities. Bantayan Island produced the majority of the discarded nets for 2014. The sites on the island – Baod, Doong, Kaongkod, Talangnan & Hilantagaan – collected more than 25 tons of nets.

Truly, Net-Works is a program that has a three-fold impact:• Improved marine life thru increased collection – used nets left on the beach & the waters harm marine life• Environmental impact – recycling these nets improve coastal ecosystems• Economic impact – as the model provides alternative livelihood and additional income to local communities,

they get more financial opportunities

The strength behind the Net-Works partnership is what makes Net-Works work. Interface provides business strategy, startup capital and a global network. ZSL provides conservation expertise, local community organisation and local partner development. And Aquafil provides an innovative regeneration process that recycles the nets into yarn. The core team is dedicated to a long-term agreement: to work together to co-innovate an inclusive model that can grow and scale. Net-Works relies on solid relationships with dedicated, and trusted local partners in the Philippines, Cameroon,and with the members of the supply chain. This partnership model ensures that Net-Works can be adopted by local communities with great care and consideration of local economies, customs, and relationships.



FORGING AHEADFor the past 30 years, everyone at NWTF has worked hard so that the foundation’s vision to be “a sustainable institution of change, building vibrant Dungganon communities” is achieved by concretizing its mission “to provide client-responsive sustainable financial and developmental services to the poor.”

We have been successful in translating our vision and mission into actual products and services, especially for our Project Dungganon clients using the Grameen Method. In 30 fruitful years, we have expanded to 79 branches in 7 islands and now provide clients with a variety of micro-loan products plus other services including insurance, health services, scholarships and even memorial services. As a result, our clients tell us that many of their neighbors and relatives wish that they too could avail of the products and services that Project Dungganon clients enjoy.

It was always part of the plan to reach the wider community, but our first commitment was to build up the capabilities of our clients. Now that many of them are moving up, we would like to enable them to do so more securely and offer additional products and services to them and their communities.

Starting 2015, we will be expanding Project Dungganon to more areas. We will also be establishing new businesses that support the social welfare of the communities — these social businesses such as Dungganon Health Centers will provide health and wellness services to both Project Dungganon clients and members of the community. NWTF will invest in starting the business and putting all the structures in place to ensure that this venture will be self-sustaining.

NWTF will also be investing in other businesses that have potential for growth and whose products and services offer social welfare benefits to the communities that they are in. For example, we may invest in Tesda accredited Skills Training Centers that will enable out-of-school youths to learn a new craft and empower them to increase their income potential. We may also fund a Wholesale Grocery chain which will supply small sari-sari store owners with products at reasonable prices.

But our goal is not only to provide micro-entrepreneurs with access and opportunities to scale-up their businesses. Even as we have been achieving our goal that 80% of our clients live below the poverty line when they join Project Dungganon, we realize that there are still many who subsist at an even lower level with no skills, no education, and no way out of poverty.

We would like to take on the challenge of reaching these ultra-poor and help them acquire skills that will then enable them to move their families out of poverty. This will be a new program, and will require intense and concentrated focus on the program members.

With everyone at NWTF fully committed to stay true to our vision and mission, and all of us unfaltering in our passion for our work, in these 30 years we can surely claim that NWTF is doing its part in helping eradicate poverty in our part of the Philippines.

R.G. Manabat & Co.The KPMG Center, 9/F6787 Ayala AvenueMakati City 1226, Metro Manila, Philippines

Branches: Subic • Cebu • Bacolod • Iloilo

Telephone +63 (2) 885 7000

Fax +63 (2) 894 1985

Internet www.kpmg.com.ph

E-Mail [email protected]

REPORT OF INDEPENDENT AUDITORS

The Board of Trustees and MembersNegros Women for Tomorrow Foundation, Inc. and Subsidiary102 Verbena-San Sebastian StreetsBacolod City

We have audited the accompanying consolidated financial statements of Negros Women for Tomorrow Foundation, Inc. (a nonstock, nonprofit corporation) and Subsidiary, which comprise the consolidated statements of financial position as at December 31, 2014 and 2013, and the consolidated statements of comprehensive income, consolidated statements of changes in fund balances and consolidated statements of cash flows for the years then ended, and notes, comprising a summary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Consolidated Financial Statements

Management is responsible for the preparation and fair presentation of these consolidated financial statments in accordance with Philippine Financial Reporting Standards, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility

Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We conducted our audits in accordance with Philippine Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the entity’s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the consolidated financial statements present fairly, in all material respects, the consolidated financial position of Negros Women for Tomorrow Foundation, Inc. (a nonstock, nonprofit corporation) and Subsidiary as at December 31, 2014 and 2013, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with Philippine Financial Reporting Standards.

R.G. MANABAT & CO.

VIRGILIO L. MANGUILIMOTANPartnerCPA License No. 0035026SEC Accreditation No. 0047-AR-3, Group A, valid until April 30, 2015Tax Identification No. 112-071-561BIR Accreditation No. 08-001987-11-2013 Issued May 9, 2013; valid until May 8, 2016PTR No. 4748114MC Issued January 5, 2015 at Makati City

March 5, 2015Makati City, Metro Manila

Dr. Cecilia D. del CastilloExecutive Director



NEGROS WOMEN FOR TOMORROW FOUNDATION, INC.(A Nonstock, Nonprofit Corporation) AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF FINANCIAL POSITIONDecember 31

2014 2013 (As restated) January 1, 2013

ASSETS

Current AssetsCash and cash equivalents P262,434,600 P204,006,638 P232,110,486

Receivables - net 1,395,668,573 1,011,360,334 881,747,741

Noncurrent assets held-for-sale - 50,920 -

Other current assets 33,924,855 24,931,070 16,175,775

Total Current Assets 1,692,028 1,240,348,962 1,130,034,002

Noncurrent AssetsInvestment securities 25,962,718 23,350,186 2,777,955

Property and equipment - net 109,506,454 74,785,126 61,508,662

Investment property - net 313,908 122,304 100,103

Deferred tax assets - net 3,681,278 3,020,883 878,943

Other noncurrent assets - net 700,103 658,928 1,504,712

Total Noncurrent Assets 140,164,461 101,937,427 66,770,375

P1,832,192,489 P1,342,286,389 P1,196,804,377

LIABILITIES AND FUND BALANCESCurrent LiabilitiesAccounts payable and other current liabilities P334,392,374 P293,674,928 P228, 418,387

Income tax payable 524, 722 1,495,123 -

Deposits from customers 54,165,324 42,770,928 26,327,550

Due to members 728,852,367 476,224,701 355,346,836

Current portion of loans payable 77,678,737 62,066,609 139,873,061

Total Current Liabilities 1,195,613,524 876,232,289 749,965,834

Noncurrent LiabilitiesLoans payable - net of current portion 5,173,418 36,045,422 27,705,613

Retirement liability 9,188,288 1,815,514 3,702,010

Total Noncurrent Liabilities 14,361,706 37,860,936 31,407,623

Total Liabilities 1,209,975,230 914,093,225 781,373,457

Fund Balances 622,217,259 428,193,164 415,430,920

P 1,832,192,489 P1,342,286,389 P1,196,804,377

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOMEYears Ended December 31

2014 2013 (As restated)

INTEREST INCOMELoans and advances to customers P424,666,281 P348,322,715

Deposits and short-term placements with banks 3,161,950 1,922,928

Investment securities 280,412 229,861

428,108,643 350,475,504

INTEREST EXPENSELoans payable 6,066,511 7,803,075

Due to members 14,774,565 11,273,078

Deposits from customers 1,765,916 1,178,719

22,606,992 20,254,872

NET INTEREST INCOME BEFORE IMPAIRMENT LOSSES 405,501,651 330,220,632

IMPAIRMENT LOSSES 25,538,640 36,429,288

NET INTEREST INCOME AFTER IMPAIRMENT LOSSES 379,963,011 293,791,344

OTHER INCOME – Net

Service fees 78,031,942 64,256,062

Foreign exchange gain – net 573,202 211,998

Miscellaneous 5,757,479 5,871,118

84,362,623 70,339,178

OTHER EXPENSES 382,139,212 346,435,242

INCOME BEFORE INCOME TAX 82,186,422 17,695,280

INCOME TAX EXPENSE 2,464,580 1,418,810

NET INCOME P79,721,842 P16,276,470

OTHER COMPREHENSIVE LOSSItem that will not be reclassified to profit or loss in subsequent periodsNet change in fair value of available-for-sale (AFS) financial assets P2,704,862 (P4,598,476)

Remeasurement of net retirement liability (5,657,593) (552,399)

Deferred tax 44,978 (25,589)

(2,907,753) (5,176,464)

TOTAL COMPREHENSIVE INCOME P76,814,089 P11,100,006

NEGROS WOMEN FOR TOMORROW FOUNDATION, INC.(A Nonstock, Nonprofit Corporation) AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF CHANGES IN FUND BALANCESYears Ended December 31

Remeasurement

General Fund(As restated) Restricted Fund

Losses on Retirement Obligation

Net Change in Fair Value of AFS Financial Asset

(As restated) TotalBalance at January 1, 2014 P212,355,619 P216,908,600 P3,527,421 (P4,598,476) P428,193,164Additions to development fund - 125,663,036 - - 125,663,036Utilization of development fund - (42,003,491) - - (42,003,491)

Grants for operations 33,550,461 - - - 33,550,461245,906,080 300,568,145 3,527,421 (4,598,476) 545,403,170

Total comprehensive income for the year:Net income for the year 79,721,842 - - - 79,721,842Net change in fair value of AFS securities - - - 2,704,862 2,704,862Remeasurement of net retirement liability for the year - - (5,612,615) - (5,612,615)

79,721,842 - (5,612,615) 2,704,862 76,814,089Balance at December 31, 2014 P325,627,922 P300,568,145 (P2,085,194) (P1,893,614) P622,217,259

Balance at January 1, 2013 P194,416,911 P216,908,600 P4,105,409 P - P415,430,920Additions to development fund - 104,337,628 - - 104,337,628Utilization of development fund - (104,337,628) - - (104,337,628)Grants for operations 1,662,238 - - - 1,662,238

196,079,149 216,908,600 4,105,409 - 417,093,158Total comprehensive income for the year: Net income for the year As previously reported 16,364,519 - - - 16,364,519 Restatement (88,049) - - - (88,049)

16,276,470 - - - 16,276,470 Net change in fair value of AFS securities As previously reported - - - - - Restatement - - - (4,598,476) (4,598,476)

16,276,470 - - (4,598,476) 11,677,994Remeasurement of net retirement liability for the year - - (577,988) - (577,988)

16,276,470 - (577,988) (4,598,476) 11,100,006Balance at December 31, 2012 P212,355,619 P216,908,600 P3,527,421 (P4,598,476) P428,193,164

CONSOLIDATED STATEMENTS OF CASH FLOWSYears Ended December 31

2014 2013 (As restated)CASH FLOWS FROM OPERATING ACTIVITIESIncome before income tax P82,186,422 P17,695,280Adjustments for:

Impairment losses 25,538,640 36,429,288Interest expense 22,606,992 20,254,872Depreciation 17,038,999 15,068,904Retirement expense 5,149,729 3,916,065Fair value gain (loss) on available-for-sale financial asset 2,704,861 (4,598,476)Loss on disposal of property and equipment (195,390) 2Interest income (3,456,266) (2,337,323)

Operating income before working capital changes 151,573,987 86,428,612Changes in:

Receivables (389,586,217) (169,793,219)Other current and noncurrent assets (9,034,959) (7,909,511)Accounts payable and other current liabilities 37,817,983 65,256,542

Retirement liability (2,925,000) (5,802,561)Development cost 83,659,545Deposits from customers 9,440,854 16,443,378

Cash absorbed by operations (119,053,807) (15,376,759)Grants for operation 18,547,535Income tax paid (2,016,074) (981,378)Interest received 3,456,266 1,500,298Interest paid (40,535,088) (20,254,872)Net cash used in operating activities (139,601,168) (35,112,711)CASH FLOWS FROM INVESTING ACTIVITIES

Additions to property and equipment (52,012,118) (28,345,370)

Proceeds from disposal of property and equipment 447,181 -

Acquisition of investment securities (2,612,532) (15,973,755)Additions to investment property (215,037) (24,668)Decrease (increase) in noncurrent assets held-for-sale 50,920 (58,566)Net cash used in investing activities (54,341,586) (44,402,359)CASH FLOWS FROM FINANCING ACTIVITIESProceeds from loans P65,500,000 P63,000,000Payment to loans (65,756,950) (132,466,643)Contributions from members 252,627,666 120,877,865

Net cash provided by financing activities 252,370,716 51,411,222NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 58,427,962 (28,103,848)CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 204,006,638 232,110,486CASH AND CASH EQUIVALENTS AT END OF YEAR P262,434,600 P204,006,638



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